3Com posts $167M quarterly loss

The tech company suffers from a wider decline in profit due to an impairment charge, even as revenue rises 3%.

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June 24, 2008: 5:35 PM EDT

3Com posted a wider fourth-quarter loss due to a goodwill impairment charge.

MARLBOROUGH, Mass. (AP) -- 3Com Corp. said Tuesday its fiscal fourth-quarter loss widened after the network equipment maker took a goodwill impairment charge.

The Marlborough, Mass., company's loss in the quarter ended May 30 came in at $166.7 million, or 41 cents per share. A year ago, the loss was $66.2 million, or 17 cents per share.

The latest period included a charge of $158 million, or 39 cents per share, related to a 2005 acquisition. Excluding special items, profit rose to $35.6 million, or 9 cents per share, from $4.6 million, or 1 cent per share, last year.

Analysts, whose estimates typically exclude one-time items, expected income of 5 cents per share, according to Thomson Financial.

Revenue rose 3% to $321.3 million from $310.9 million last year, and exceeded the $315.3 million expected on Wall Street.

For the year, 3Com's loss widened to $228.8 million from $88.6 million. Revenue rose 2% to $1.29 billion from $1.27 billion.

3Com (COMS) shares rose 14 cents, or 5.9%, to $2.51 in the aftermarket. They closed at $2.37.

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